What is the FRS Health Insurance Subsidy and can I use it with Medicare?

What the HIS is

Florida Statutes 112.363 created the HIS "to provide a monthly subsidy payment to retired members of any state-administered retirement system" to help pay for health insurance. The FRS form instructions describe it as extra money added to your monthly retirement benefit and stress that it "is not a health insurance policy." Key facts:

• Amount: a fixed amount for each year of creditable service used to calculate your benefit, with a monthly minimum and maximum set in the statute. Years in the Deferred Retirement Option Program (DROP) don't count.
• Not guaranteed forever: the statute says benefits may be reduced or canceled if funding falls short, and the form notes the subsidy depends on continued approval by the Legislature.
• No State plan required: the law says participating in a former employer's group health plan "is not a requirement." Coverage with any company or employer can qualify.

How Medicare counts

The FRS Pension Plan certification form, HIS-1, lists the coverage that qualifies:

If you certify with Medicare, attach a photocopy of your Medicare card (never the original). The form says your HIS effective date "cannot be earlier than your Medicare effective date," so if you had other coverage first, certify that coverage to get the earliest start.

How to apply

1. Sign the top of Form HIS-1. The Division of Retirement mails it to retirees most likely to qualify; it's also on the FRS website.
2. Complete one section. A: your health premium is deducted from your FRS benefit. B: your former employer, or People First for state agencies, certifies your coverage. C: your insurance company certifies it (insurance cards aren't accepted). D: attach a copy of your Medicare or TRICARE card.
3. Send it within six months. Forms received within six months after your benefits begin are paid back to your retirement date; later, back pay is limited to six months.

Return the form to the FRS Retired Payroll Section (844-377-1888). DROP participants can apply only after they end employment and DROP participation.

Who is eligible

Retirees of a state-administered retirement system, including the FRS Pension Plan, and certain surviving beneficiaries who receive monthly benefits. Investment Plan retirees qualify once they meet normal retirement requirements. Since July 1, 2001, retirees must have met their class's vesting requirement. The statute excludes the Senior Management Service Optional Annuity Program, the State University System Optional Retirement Program and certain special pensions.

The HIS works whichever Medicare path you choose: State Group Insurance, an individual Medicare Advantage plan, or Medigap and Part D. See Florida state retirees and Medicare, or request a call from a licensed insurance agent to compare individual plans.

Related questions

Sources

• Florida Statutes 112.363, Retiree health insurance subsidy
• FRS Division of Retirement — Form HIS-1, Health Insurance Subsidy Certification Form and instructions
• Florida Administrative Code Rule 60S-4.020, Health insurance subsidy (via Cornell LII)

More questions in this guide

• Do Florida state retirees need Medicare Part B?
• Can Florida county, city and school district retirees stay on their employer health plan with Medicare?
• What Medicare options does Florida's State Group Insurance program offer retirees?
• What happens to my Florida State Group Insurance when I turn 65?

Part of the guide: Florida state retirees and Medicare · All questions

Frequently asked questions

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